The new Fair Insurance Code has gone live in New Zealand, giving consumers and businesses higher standards of service.

The Insurance Council of New Zealand (ICNZ) says its members have made a number of changes to align with the revised code. Member must comply or will risk a $NZ100,000 ($92,561) fine and possible expulsion from the council.

“[The standards] set a high benchmark for self-regulation, so the public can have trust and confidence in their dealings with our members,” CEO Tim Grafton said.

“For the first time, insurers will need to meet minimum timeframes for responding to the public when claims are made.”

Other key changes require insurers to offer enhanced, effective communication with the insured, to act reasonably when faced with the non-disclosure of relevant information and to prioritise vulnerable customers in a catastrophe or disaster.